General improvement districts (“GIDs”) are limited purpose special districts along the lines of vector control (mosquitos), library, fire and cemetery districts. In Nevada they are creatures of statute and those statutes appear at Title 25¹, Chapter NRS 318. GIDs were created in 1959² as “political subdivisions” of the State³. That is, “governmental subdivision(s) of the State of Nevada…body corporate(s) and politic and…quasi-municipal corporation(s).”⁴ The arguable reason for creation of GIDs is “to provide various urban type services (to real property⁵ in)…areas where such services were not available and could not be provided (for) by general purpose government(s).”⁶

GIDs are initiated at the prerogative of Boards of County Commissioners⁶ (“County Boards) either by “resolution…or…petition⁷ proposed by any owner of property to be located in the district.”⁸ When the power to create GIDs was initially conferred upon County Boards, “there were no criteria to guide county commissioners as to whether or not a (GID) should be created (and if so, what basic powers it should be granted. Although that changed) in 1965 (when)…requirement(s) w(ere) added that there be…finding(s) that public convenience and necessity require creation of the district and that such creation is economically sound and feasible,”⁹ these requirements were not applied retroactively to the “many existing districts…created prior to the passage of” these changes. Moreover, even today there is no requirement a County Board find that: public convenience and necessity require the continuation of existing GIDs; and that they operate economically soundly and feasible.

Quasi-municipal corporations are not true municipal corporations having all general powers of local government. Rather, they are public agencies endowed with only such attributes of a municipality as may be deemed necessary in the performance of their limited objectives¹⁰. Stated differently, and expressly given Nevada is a Dillon’s Rule State¹¹, a GID’s powers are to be strictly construed and limited¹² to those provided by the Legislature¹³ as explicitly conferred by its County Board in the GID’s initiating ordinance¹⁴ as supplemented if at all, by those “additional basic power(s) granted,”¹⁵ “sections of this chapter (NRS 318) designated therein,”¹⁶ and none other¹¹. Thus the powers identified herein are the extent of basic powers a GID may legitimately exercise. And should there be any fair, reasonable, or substantial doubt concerning the existence of any other powers, according to Dillon’s Rule, that doubt should be resolved against the District, and the power be denied¹⁰.

But in the real world, that’s not what takes place. Notwithstanding the Nevada Department of Taxation (“NDOT”) is empowered to “exercise general supervision and control over the entire revenue system of the State…except as otherwise provided by law,”¹⁷ presumably to “protect (the) public health…safety” and welfare of Nevada’s citizens¹⁸ given it is “a state agency¹⁹…subject to the Nevada Administrative Procedure Act,”²⁰ and this jurisdiction is to be broadly construed “to exercise…any necessary and proper power(s)” whether or not expressly enumerated²¹, NDOT takes the position IVGID “is a legally separate government…fiscally independent of any other governmental entity…(and) not financially accountable (to) any other entity.”²⁶ Similarly, so do IVGID²², as well as Washoe County²³. And given NRS 318.015(1) instructs that “the provisions of…chapter (318) shall be broadly construed,” GIDs like IVGID take the position that just like true municipalities, absent express prohibition, they may exercise any power which “promote(s) the health, safety, prosperity, security and general welfare of the inhabitants (of GIDs) and of the State of Nevada.”²⁴ And therein lies the problem; what powers may GIDs exercise, and who exists to stop them?

1. See Public Organizations for Community Service (go to https://www.leg.state.nv.us/nrs/).
2. See SB20 at https://www.leg.state.nv.us/Statutes/49th1959/Stats195903.html#Stats195903page457.
3. According to NRS 281A.145, “any county, city or other local government as defined in NRS 354.474.” In other words, every “entity which has the right to levy or receive money from ad valorem or other taxes or any mandatory assessments, and (expressly) includes…counties, cities, towns, boards, school districts and other districts organized pursuant to chapter…318…of NRS” {see NRS 354.474(1)(a)}].
4. See NRS 318.075(1).
5. Consider that NRS 318.258(9) instructs that the services a GID “provide(s are those)…required by the owners of the real property.” NRS 318.197(2) instructs that “all rates, tolls or charges (adopted shall) constitute a perpetual lien on and against the property served.” NRS 318.201(10) also instructs that “the amount of the charges shall constitute a lien against the lot or parcel of land against which the charge has been imposed.” NRS 318.203 instructs that “where a dwelling unit (on a)…parcel of real property upon which the unit referenced…exists that is not currently being charged for services provided by a general improvement district…the board…of trustees…may adopt a resolution…to charge the owner…for the services provided.” NRS 318.170(1)(b) instructs that “all owners of inhabited property in the district (may be compelled) to use (and pay for) the district’s system for the collection and disposal of sewage, garbage and other refuse.” And NRS 318.201(1) instructs that when a “board which has adopted rates pursuant to this chapter…elect(s) to have such charges for the forthcoming fiscal year collected on the tax roll…it shall cause a written report to be prepared…which shall contain a description of each parcel of real property receiving such services and facilities and the amount of the charge for each parcel for such year.” In other words, in all of these examples the owners of real property are charged for the services and facilities a GID provides.
6. See ¶II at page 8 of Legislative Commission of the Legislative Counsel Bureau, State of Nevada (“LCB”), Bulletin No. 77-11, Creation, Financing and Governance of General Improvement Districts, September 1976 (LCB Bulletin 77-11).
7. County Board resolutions of initiation are called “initiating ordinances” [see NRS 318.055(2)].
8. See NRS 318.055(1).
9. See ¶II, at page 9 of LCB Bulletin 77-11.
10. See City of Aurora v. Aurora Sanitation Dist., 112 Colo. 406, 411, 149 P.2d 662, 664 (1944); Goodwin v. Thieman, 74 P.3d 526, 528 (Colo.App.2003).
11. See Ronnow v. City of Las Vegas, 57 Nev. 332, 341-43, 65 P.2d 133 (1937). Dillon’s Rule instructs that “a  municipal corporation possesses and can exercise the following powers, and no others: First, those granted in express words; second, those necessarily or fairly implied in or incident to the powers expressly granted; third, those essential to the accomplishment of the declared objects and purposes of the corporation – not simply convenient, but indispensable. (And) any fair, reasonable, substantial doubt concerning the existence of power is resolved by the courts against the corporation, and the power is denied…Neither the corporation nor its officers can do any act, or make any contract, or incur any liability, not authorized thereby, or by some legislative act applicable thereto. (And) all acts beyond the scope of the powers granted are void” (Id., at 57 Nev. 343).
12. See A.G.O. No. 63-61, p. 102, at p. 103 (August 12, 1963).
13. See NRS 318.116.
14. See NRS 318.055(4)(b).
15. Pursuant to NRS 318.077.
16. See NRS 318.055(4)(a).
17. See NRS 360.200. This is really the statutory embodiment of the second portion of Dillon’s Rule: “a municipal corporation possesses and can exercise…those…powers…necessarily or fairly implied in or incident to the powers expressly granted.”
18. See NRS 233B.038(2)(l).
19. See NRS 233B.031.
20. See NRS 233B.010.
21. See NRS 360.270, NAC 360.043(1)(c).
22. See ¶1(A) at page 35 of the 2019 CAFR.
23. See page 1 of that August 21, 2015 memorandum from Ass’t District Attorney Paul Lipparelli to the County Board  insofar as “the Legal Authority of GIDs in Nevada,” wherein he concludes that once created, “GIDs are independent legal entities with their own perpetual existence.”
24. See NRS 318.015(1).